Ghana records sharp debt reduction to GH¢641bn in 2025 amid mixed dollar, domestic trends

Ghana’s fiscal position experienced notable changes at the close of 2025, with the country’s total public debt stock recorded at GH¢641 billion in December, slightly down from GH¢644.6 billion in November 2025.

Year-on-year, the decline was more pronounced, falling from GH¢726.7 billion in December 2024, reflecting the impact of ongoing debt restructuring and currency fluctuations. According to the Bank of Ghana’s March 2026 Summary of Economic and Financial Data, the reduction of GH¢82.1 billion from 2024 levels (from 61.8% of GDP to 45.3% of GDP) represents one of the most significant debt adjustments in recent years.

Dollar-Denominated Debt Tells a Different Story

Despite the decline in cedi terms, Ghana’s debt in U.S. dollars rose to $61.3 billion in December 2025, up from $57.2 billion in November and $49.4 billion in December 2024. This divergence reflects exchange rate movements, with the cedi ending the year around GH¢10.45 to the dollar. Nonetheless, the debt-to-GDP ratio improved substantially, signaling progress in fiscal consolidation.

External and Domestic Debt Dynamics
Public debt composition continued to show contrasting trends. External debt fell in cedi terms to GH¢307.2 billion ($29.4 billion) in December 2025 from GH¢330.2 billion in November and GH¢416.8 billion in December 2024. However, in dollar terms, external debt edged slightly higher from $29.3 billion the previous month.

Conversely, domestic debt rose to GH¢333.8 billion, up from GH¢314.5 billion in November and GH¢309.8 billion in December 2024, reflecting the government’s continued reliance on local markets for financing.

Revenue and Fiscal Performance Strengthen

Government revenue strengthened toward year-end, with total revenue and grants reaching 16.1% of GDP in December 2025, up from 13.4% in November and slightly above the 15.9% recorded in December 2024. Domestic revenue remained the main contributor at 15.9% of GDP, with tax collections accounting for 13.1%, highlighting the central role of tax mobilisation in fiscal recovery.

Total expenditure was aligned with revenue at 16.1% of GDP, down from 16.6% in December 2024, while capital spending remained modest at 1.4% of GDP. The fiscal deficit (cash basis) narrowed to 3.1% of GDP from 5.2% a year earlier, and a primary surplus of 0.5% of GDP indicated tighter fiscal discipline.

Implications for Policy and Business
The sharp reduction in total debt is among the most significant in Ghana’s history. For the business community, however, rising domestic debt continues to exert pressure on local liquidity, while the increase in dollar-denominated obligations highlights ongoing exchange rate risks.

Overall, improvements in the debt-to-GDP ratio, fiscal balance, and revenue performance suggest that Ghana’s fiscal consolidation measures are beginning to take effect, offering a more stable outlook for public finances.